Technology m&a trends 2012

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  •  2012 deal environment still murky, with two-thirds of respondents expecting the recovery in 2013 or later Companies that survived the economic downfall are leaner and better prepared to weather uncertain conditions U.S. election cycle, tax uncertainty and European economic woes will have significant impact on how companies pursue transactions Conquering due diligence issues continues to challenge dealmakers Interest in emerging markets still present, but stability of developed markets continues to hold allure
  • Have picture of report with a link and have a few bullet points
  • Enterprise SoftwareThe market has seen a few robust deal values in the enterprise software industry since Q2-11, as evident by the sporadic peaks in Q3-11 and Q1-12Average revenue multiples have gradually increased from 1.7x in Q4-10 to 2.4x for Q1-12, while average EBITDA multiples have increased dramatically from 8.2x in Q3-10 to 21.4x in Q3-11, until receding in Q1-12The largest recent software transaction was Hewlett-Packard’s acquisition of Autonomy in August 2011 for ≈$11bBPO and IT ServicesThe market has seen relatively sustained deal values in the BPO and IT services industry with a few robust quartersAverage revenue multiples have been less volatile than the software industry, remaining between 1.2x in Q4-09 to 1.7x Q1-12, while average EBITDA multiples have gradually decreased during 2011
  • 1The company said that its purchase of NDS would complement its Videoscape entertainment delivery platform, taking it into emerging markets including China and India where NDS has existing customers2Transaction will increase Quest’s flexibility to drive innovation across its product lines and execute its long-term strategyInsight's track record of success with leading infrastructure software companies ensures it will be a strong partner and will increase value to all stakeholders3Taleo’s expertise in SaaS-based talent management solutions enhances Oracle’s cloud platformCreates a comprehensive cloud offering for companies to manage their HR operations, optimize costs and enhance cross functional collaboration4Vista plans to combine the British company, with Turaz, one of its existing companies that makes trade and risk-management softwareThe combination of Misys and Turaz, creates the global leader in core banking, treasury management, capital markets and enterprise risk management software5Accelerate SAP’s momentum as a provider of cloud apps, platforms & infrastructureTransaction establishes an advanced end-to-end offering of cloud and on-premise solutions for managing all business processes6Re-positions HP as a leader in the large growing enterprise information management spaceInherent value of unstructured and structured data is an exploding growth opportunity7As a result of the combination, current and future customers will benefit from a broader portfolio of products and services as well as collaboration, creativity and sharing of best practices across an expanded global community of education professionals8Blackboard’s experience as a leader in education focused solutions complements Providence Equity Partners’ extensive education industry portfolio investmentsBlackboard will utilize Providence Equity Partners’ deep understanding of the intl education marketplace & will provide educational facilities with cutting edge technology9Telvent’s strong positioning in infrastructures and best-in-class software & IT capabilities fits particularly well with Schneider Electric energy and process management expertise and global presence10With the addition of Savvis, CenturyLink will achieve global scale as a managed hosting and colocation provider and will accelerate its ability to deliver quality managed hosting and cloud capabilities to its business customers. The combination of CenturyLink's hosting and network assets with Savvis' proven solutions in colocation, managed hosting and cloud services substantially enhances CenturyLink's capabilities and provides the company with a solid platform for future growth
  • Investment banks:451 Research Group, Corum Group“Convergence between hardware, software and services will continue to add products to the same sales chains,” said Bozdog, who is based in Palo Alto, California. (Source: http://www.bloomberg.com/news/2012-02-06/most-takeovers-since-2007-seen-spurred-by-data-torrent-tech.html)2) “Most established companies are worried about disruptive technologies,” said Chris McCabe, co-head of investment banking and head of technology, media and telecommunications banking at Cowen. “They want to make sure their company captures that growth through M&A rather than seeing that growth go to a start-up.”(Source: http://www.forbes.com/sites/thestreet/2012/01/30/bankers-bullish-on-tech-ma-for-2012/)3) “Big data, mobile and cloud technologies will drive “bold investments and fateful decisions,” market researcher IDC said in a recent report. The volume of digital information may balloon from 2.7 zettabytes this year -- the equivalent of filling 2.7 billion of Apple Inc. (AAPL)’s priciest desktop iMacs to capacity -- to 8 zettabytes by 2015, according to IDC.” (Source: http://www.bloomberg.com/news/2012-02-06/most-takeovers-since-2007-seen-spurred-by-data-torrent-tech.html)4) Signal Hill 2012 M&A Outlook - Impact of social media on enterprise software solutions - We expect there will be expanded focus on social enterprisesolution providers. Smaller firms will be acquired by larger, less agile companies looking to remain relevant and enter the social media space (Radian6/Salesforce.com, Everyday Hero/Blackbaud);Industry Research:1) “Volume last year was much higher than in 2010, and we expect this year to be the same or slightly larger”, said Jon Woodruff, co-head of technology investment banking, Goldman Sachs Group-“This year’s technology deal volume could be bigger than last year’s and 2007’s,” said Chet Bozdog, global head of technology investment banking at Bank of America Corp. Industry takeovers in 2007 reached $264.4 billion, the biggest year since 2000’s record high of $585.2 billion, data compiled by Bloomberg show. “Convergence between hardware, software and services will continue to add products to the same sales chains,” said Bozdog, who is based in Palo Alto, California. (Source: http://news.businessweek.com/article.asp?documentKey=1377-aKE1QOeolAX4-5S0JK32RO1ASKBJ48SUVEAKOK3)-Corum Group Research on 2012 M&A Outlook: Predicts M&A deal $ volume of $250 billion2) 451 Research Group, Bloomberg interview on Tech M&A in 2012 (Source: http://www.ustream.tv/recorded/19431481)3) Source: Corum Group Research on 2012 M&A Outlook4) Signal Hill 2012 M&A Outlook - Increased interest in vertically focused solutions - Historically, larger entities looking to gain domain expertise in newindustries have reached for vertical application targets. We expect companies will look to these acquisitions in 2012 as customers continue to demand vertical functionality “out-of-the-box” (Cúram and DemandTec/IBM).
  • “Volume last year was much higher than in 2010, and we expect this year to be the same or slightly larger”, said Jon Woodruff, co-head of technology investment banking, Goldman Sachs Group (Source: http://news.businessweek.com/article.asp?documentKey=1377-aKE1QOeolAX4-5S0JK32RO1ASKBJ48SUVEAKOK3)-“This year’s technology deal volume could be bigger than last year’s and 2007’s,” said Chet Bozdog, global head of technology investment banking at Bank of America Corp. Industry takeovers in 2007 reached $264.4 billion, the biggest year since 2000’s record high of $585.2 billion, data compiled by Bloomberg show. “Convergence between hardware, software and services will continue to add products to the same sales chains,” said Bozdog, who is based in Palo Alto, California. (Source: http://news.businessweek.com/article.asp?documentKey=1377-aKE1QOeolAX4-5S0JK32RO1ASKBJ48SUVEAKOK3)-Cloud computing, which allows companies to access information over the Internet from external data centers, and desktops’ shift to mobile devices, will continue to be “huge multiyear trends,” said Drago Rajkovic, head of technology mergers and acquisitions at JPMorgan Chase & Co. (Source: http://news.businessweek.com/article.asp?documentKey=1377-aKE1QOeolAX4-5S0JK32RO1ASKBJ48SUVEAKOK3)-2012 has a perfect storm of trends in disruptive technology, tax changes, industry consolidation, new buyers, and record cash reserves held by major technology companies, all of which will make it best year since the dot-com era for M&A in software, Internet, IT and related technologies,” said Bruce Milne, Corum CEO and ‘Selling Up Selling Out’ Conference Chair. (Source: http://www.datasite.com/2012-perfect-storm-technology-mergers-acquisitions042.htm, http://www.prweb.com/releases/techma/sandiego/prweb9209150.htm)-” Big data, mobile and cloud technologies will drive “bold investments and fateful decisions,” market researcher IDC said in a recent report. The volume of digital information may balloon from 2.7 zettabytes this year -- the equivalent of filling 2.7 billion of Apple Inc.’s priciest desktop iMacs to capacity -- to 8 zettabytes by 2015, according to IDC. -IBM, Mark Loughridge (CFO): “I do think the acquisition play is a good one, and I do think the market’s in a more reasonable position.”, “Our focus on key growth initiatives and investments in innovation are enabling us to expand into new markets, and capitalize on trends like analytics and cloud” (Source: http://seekingalpha.com/article/320777-international-business-machines-management-discusses-q4-2011-results-earnings-call-transcript?part=qanda)-BMC, 10K report (May-11): We continue to invest in our technology leadership, including in the areas of cloud computing, virtualization and software-as-a-service. In addition to our ongoing product development efforts, we consummated two strategic acquisitions within our ESM segment during fiscal 2011, by acquiring GridApp Systems and the software business of Neptuny S.r.l. The former expands our ESM offerings to include advanced database automation for physical, virtual and cloud environments while the latter expands our capabilities in capacity management, enhancing our ESM portfolio and cloud management capabilities.

Transcript

  • 1. About Firmex Firmex focused on providing the best virtual data room solution for managing corporate transactions and financial compliance Who uses Firmex?JoelLessemCEO • Firmex community includesFirmex over 200,000 users worldwide • Conducted over 10,000 deals in the last 18 months Why offer a Webinar Series? • As part of our value-added service, we believe it is important to offer educational resources to our expanding community ©COPYRIGHT 2012. FIRMEX. ALL RIGHTS RESERVED
  • 2. @Firmex, #FirmexWebinarTrends in Technology M&AAnd Outlook for the Remainder of 2012 Firmex Webinar Series Cyrus Lam April 17th, 2012 KPMG Corporate Finance LLC Managing Director 1:00 p.m. to 2:00 p.m. 757 3rd Avenue New York, NY 10017 212-872-5540 clam3@kpmg.com kpmgcorporatefinance.com©COPYRIGHT 2012. FIRMEX. ALL RIGHTS RESERVED
  • 3. About Firmex Firmex is focused on providing the best virtual data room solution for managing corporate transactions and financial complianceJoelLessem Who uses Firmex?CEOFirmex • Firmex community includes over 200,000 users worldwide • Conducted over 10,000 deals in the last 18 months Why offer a Webinar Series? • As part of our value-added service, we believe it is important to offer educational resources to our expanding community ©COPYRIGHT 2012. FIRMEX. ALL RIGHTS RESERVED
  • 4. Cyrus Lam Cyrus Lam is a Managing Director with KPMG Corporate Finance LLC in New York with a technology focus specializing in IT Services, BPO, and Enterprise Software sectors. He has over 14 years of cross-border M&A experience, acting on buy-side and sell-side, as well as assisting on private placements (debt and equity). Cyrus holds a Masters Degree and a Bachelor of Commerce degree in Business and Accounting from the University of Mumbai, India. He is also a Chartered Accountant and is a Fellow of the Institute of Chartered Accountants, India. Cyrus has been with KPMG for over 16 years, having started in India as an accountant and later transitioning to the Indian Corporate Finance Practice. In October 2000, Cyrus joined KPMG Corporate Finance in London, and subsequently moved to the U.S. Corporate Finance team in December 2006. Cyrus specializes in the technology and support services vertical with a focus on: • Information technology services • Enterprise software (including both vertically and horizontally focused software companies) • Business process outsourcing During his time with KPMG, Cyrus has developed significant cross-border transaction experience, having worked on M&A deals in India, the U.S., the U.K., Sweden, Germany, France, Spain and the Netherlands.©COPYRIGHT 2012. FIRMEX. ALL RIGHTS RESERVED
  • 5. CORPORATE FINANCETrends in Technology M&AAn Outlook for the Remainder of 2012Cyrus F. LamKPMG Corporate Finance LLCApril 17, 2012ADVISORY
  • 6. Important noticeThis presentation is confidential and does not carry any right of publication or disclosure to any other party. This presentation is incompletewithout reference to, and should be viewed solely in conjunction with, the oral briefing provided by KPMG Corporate Finance LLC. Neither thispresentation nor any of its contents may be used for any other purpose without the prior written consent of KPMG Corporate Finance LLC.The information in this presentation is based upon publicly available information and reflects prevailing conditions and our views as of thisdate, all of which are accordingly subject to change and such changes may be material. In preparing this presentation, we have relied upon andassumed, without independent verification, the accuracy and completeness of all information available from public sources or which wasotherwise reviewed by us.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the dateit is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional adviceafter a thorough examination of the particular situation.While the information presented and views expressed in this presentation and the oral briefing have been prepared in good faith, KPMGCorporate Finance LLC accepts no responsibility or liability to any party in connection with such information or views.©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 5reserved.
  • 7. M&A Market LandscapeTechnology M&A LandscapeDeal ManagementQuestions
  • 8. Global and U.S. M&A activity Global M&A activity U.S. M&A activity 1,000 13,233 14,000 1,000 14,000 12,879 12,641 12,478 900 11,505 900 10,971 12,000 12,000 10,716 10,717 10,675 800 10,315 800 700 10,000 700 10,000 8,517 718 Deal Volume Deal VolumeDeal Value ($ b) Deal Value ($ b) 8,148 677 600 661 600 7,442 621 8,000 8,000 605 569 500 525 550 554 537 500 6,000 6,000 400 427 451 400 396 3,854 3,820 3,810 3,714 300 4,000 300 3,159 3,224 3,284 3,478 3,232 4,000 3,033 2,004 2,228 2,440 266 200 200 255 226 223 235 219 2,000 207 203 2,000 195 188 167 100 100 150 100 - - - - Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Deal Value Deal Volume Deal Value Deal Volume  2012 was expected to be a robust M&A year, but Q1 volumes have disappointed  Q1-12 global deal volume is the lowest since Q1-10  However, there has been a recent surge in the number of IPOs over the past 6 months  Private equity firms are using buoyant equity markets to take more of their portfolio companies public  There have been 36 private equity backed IPOs in Q1-12 representing 35% of global IPOs deals, the most since 2000 Source: Capital IQ and Financial Times ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 7 reserved.
  • 9. M&A volume by sector Consumer Discretionary Consumer Staples Energy Financials Healthcare 700 15 700 15 700 15 700 15 700 15 600 600 600 600 600 Deal Volume (000s)Deal Value ($ b) 500 500 500 500 500 10 10 10 10 10 400 400 400 400 400 300 300 300 300 300 5 5 5 5 5 200 200 200 200 200 100 100 100 100 100 - - - - - - - - - - 2009 2010 2011 2012* 2009 2010 2011 2012* 2009 2010 2011 2012* 2009 2010 2011 2012* 2009 2010 2011 2012* Deal Value Deal Volume Industrials Information Technology Materials Telecommunications Utilities 700 15 700 15700 15 700 15 700 15 600 600 600 600 600 Deal Volume (000s)Deal Value ($ b) 500 500 500 500 500 10 10 10 10 10 400 400 400 400 400 300 300 300 300 300 5 5 5 5 5 200 200 200 200 200 100 100 100 100 100 - - - - - - - - - - 2009 2010 2011 2012* 2009 2010 2011 2012* 2009 2010 2011 2012* 2009 2010 2011 2012* 2009 2010 2011 2012* Deal Value Deal Volume Source: Capital IQ Note: *2012 deal value and deal volume are annualized based on Q1-12 ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 8 reserved.
  • 10. Average M&A multiples by sector Consumer Discretionary Consumer Staples Energy Financials Healthcare 14.0x 14.0x 14.0x 14.0x 14.0x 12.1x 12.0x 12.0x 12.0x 12.0x 12.0xEnterprise Value Multiple 9.7x 9.9x 10.0x 9.0x 10.0x 10.0x 10.0x 10.0x 8.0x 8.0x 8.0x 7.0x 8.0x 8.0x 6.0x 6.0x 6.0x 6.0x 6.0x 3.6x 4.0x 4.0x 4.0x 2.9x 4.0x 4.0x 2.3x 1.2x 1.2x 2.0x 2.0x 2.0x 2.0x 2.0x 0.0x 0.0x 0.0x 0.0x 0.0x 2009 2010 2011 Q1-12 2009 2010 2011 Q1-12 2009 2010 2011 Q1-12 2009 2010 2011 Q1-12 2009 2010 2011 Q1-12 EV/Revenue EV/EBITDA Industrials Information Technology Materials Telecommunications Utilities 14.0x 14.0x 14.0x 14.0x 14.0x 12.0x 12.0x 12.0x 12.0x 10.1x 12.0xEnterprise Value Multiple 10.1x 9.8x 9.2x 10.0x 10.0x 8.9x 10.0x 10.0x 10.0x 8.0x 8.0x 8.0x 8.0x 8.0x 6.0x 6.0x 6.0x 6.0x 6.0x 4.0x 4.0x 4.0x 4.0x 4.0x 2.2x 2.0x 1.3x 1.7x 1.1x 2.0x 2.0x 2.0x 2.0x 2.0x 0.0x 0.0x 0.0x 0.0x 0.0x 2009 2010 2011 Q1-12 2009 2010 2011 Q1-12 2009 2010 2011 Q1-12 2009 2010 2011 Q1-12 2009 2010 2011 Q1-12 EV/Revenue EV/EBITDA Source: Capital IQ ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 9 reserved.
  • 11. M&A volume by deal size Global M&A volume by deal size 6,000 264 231 193 197 5,000 176 184 208 234 152 1,301 1,163 1,234 1,118 4,000 1,039 166 137 941 1,022 120 1,031 Deal Volume 847 713 835 566 3,000 104 444 2,413 2,214 2,285 2,000 2,052 2,214 1,729 1,958 1,928 1,924 1,356 1,437 1,029 1,591 1,000 1,321 1,534 1,475 1,764 1,639 1,648 1,582 1,832 1,640 1,832 1,800 1,907 1,415 - Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 $0m - $5m $5m - $50m $50m - $500m > $500m Source: Capital IQ Note: Chart represents only transactions with disclosed values©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 10reserved.
  • 12. Average M&A multiples by deal size Global M&A multiples by deal size 14.0x EV/ EBITDA 12.0x 11.4x 10.0x 10.0x 9.6x Enterprise Value Multiple 8.0x 8.0x 6.0x 4.0x EV/ Revenue 2.7x 1.9x 2.0x 1.7x 1.0x 0.0x Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 $0m - $5m $5m - $50m $50m - $500m > $500m Source: Capital IQ Note: Chart represents only transactions with disclosed values©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 11reserved.
  • 13. Abundance of available investable capital  The market is flush with capital that needs to be deployed; financial investors have over $400b in dry powder  Strategic acquirers (made up of the S&P 500) are holding an additional $1.7 trillion in investable cash  The M&A markets should benefit from the nearly $2.1 trillion of “dry powder” PE Investors Sitting on $425b of Dry Powder S&P 500 Companies Cash Balance $600 1,800 1,687 Cash and equivalents ($b) 521 1,494 1,559 478 477 1,500 $500 Capital Overhang ($b) 439 425 $400 1,200 1,005 1,045 333 916 $300 257 900 197 $200 600 $100 300 $- 0 2004 2005 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Source: Private Equity Growth Capital Council and Capital IQ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 12reserved.
  • 14. Increased leverage capability for M&A Middle Market LBO Credit Statistics Representative Debt Pricing 6.0x Tranche Pricing (bps) 5.0xMultiple of EBITDA 4.0x Revolver L + 350 - 450 3.0x Senior Term A L+ 550 - 650 2.0x 1.0x Senior Term B L+ 650 - 700 0.0x Jan-10 Jan-11 Jan-12 May-10 May-11 Dec-10 Nov-11 Nov-10 Dec-11 Mar-10 Mar-12 Mar-11 Oct-10 Oct-11 Jun-11 Jun-10 Jul-11 Jul-10 Feb-11 Feb-12 Feb-10 Mezzanine 13% - 14% current pay & Sep-10 Sep-11 Apr-10 Apr-11 Aug-10 Aug-11 3% - 4%PIK First Lien Debt/EBITDA Second Lien Debt/EBITDA Actual pricing varies by size, ABL vs. cash flow and credit rating Other Sr. Debt/EBITDA Sub Debt/EBITDA  Leverage on M&A transactions has remained stable, Total Leveraged Loan Volume 160 and is currently above 4.0x EBITDA 140  Total loan volumes in Q1 2012 have increased since 120 Q4 2011, but are still below Q2 2011 levels $ in billions 100 80  2011 total leverage on middle market transactions 60 reached $374 billion, compared to $236 billion in 2010 40  However, the volatility in Q4 2011 has put deal pricing 20 43.4 65.9 54.2 72.7 141.2 119.0 53.1 60.8 109.8 under some pressure - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 3Q12 Source: LCD and Capital IQ ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 13 reserved.
  • 15. Factors impacting M&A in 2012 Low borrowing cost Anticipated 2013 U.S. 2012 capital gains/ Presidential dividends tax election year increase Oil prices and China and Middle East Eurozone instability uncertainty©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 14reserved.
  • 16. Knowledge @ Wharton/KPMG survey  KPMG and Knowledge@Wharton, The Wharton School of the University of Pennsylvania, have teamed to conduct the 2012 M&A Outlook Survey  Survey is based on 875 executives‟ insights and opinions with 70% of executives expecting to complete an acquisition in 2012  One-third of respondents remain optimistic for 2012 M&A  However deal environment still murky, with two-thirds of respondents expecting full recovery in 2013 or later  Companies that survived the economic downfall are leaner and better prepared to weather uncertain conditions  U.S. election cycle, tax uncertainty and European economic woes will have significant impact on how companies pursue transactions  Interest in emerging markets still present, but stability of developed markets continues to hold allure  Due diligence issues continues to challenge dealmakersKPMG Link:http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/Pages/executives-show-guarded-optimism.aspxSource: KPMG International and The Wharton School©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 15reserved.
  • 17. KPMG M&A Predictor KPMG‟s M&A Predictor is a forward-looking tool that helps clients forecast worldwide trends in mergers and acquisitions. The Predictor was established in 2007. It looks at the appetite and capacity for M&A deals by tracking and projecting important indicators 12 months forward.  Despite still being up on the dark days of 2009, the first six months of 2012 look set to be challenging  Confidence dips in global market  Lack of confidence will restrict deal flow  Consumer staples, technology, and healthcare sectors are predicted to fare better than others  Forward P/E ratios down 5% since June 2011KPMG Link:http://www.kpmg.com/global/en/issuesandinsights/articlespublications/ma-predictor/Pages/default.aspxSource: KPMG International©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 16reserved.
  • 18. M&A Market LandscapeTechnology M&A LandscapeDeal ManagementQuestions
  • 19. General technology M&A activity Global technology M&A activity U.S. technology M&A activity 45 1,200 45 1,200 40 973 991 971 40 962 948 902 906 1,000 1,000 895 35 871 35 831 30 728 800 30 800 Deal Volume Deal Volume Deal Value ($ b)Deal Value ($ b) 643 645 25 25 600 600 20 20 426 418 413 411 396 415 393 362 380 15 349 400 15 400 298 242 232 10 10 200 200 5 5 13.2 10.8 28.9 12.4 8.2 28.6 38.6 22.6 23.4 26.4 33.1 17.5 31.0 8.8 3.7 20.4 8.2 4.7 21.9 27.8 14.5 14.1 15.7 13.6 12.4 8.9 - - - - Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Deal Value Deal Volume Deal Value Deal Volume ■ In Q1-12 global technology M&A deal values have had a good start, however, deal volumes are lower than Q4 2011 ■ U.S. technology deal values have declined since Q3-10, while deal volume has been relatively consistent ■ Quarterly technology deal values are impacted by the timing of large deals ■ Scientific Atlanta - NDS in Q1 2012 ■ HP – Autonomy in Q3 2011 Source: Capital IQ ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 18 reserved.
  • 20. Global technology M&A – valuations and deal size Average enterprise software deal value and Average BPO and IT services deal value and multiples multiples 350 25.0x 350 25.0x 21.4x 300 300 20.0x 20.0x 250 250 Enterprise Value Multiple Enterprise Value Multiple 16.4xDeal Value ($ m) Deal Value ($ m) 13.1x 15.0x 14.0x 15.0x 200 13.2x 12.9x 200 11.9x 12.3x 11.0x 11.1x 10.8x 10.4x 10.1x 10.3x 10.2x 150 9.4x 150 9.6x 8.4x 8.2x 10.0x 8.3x 8.5x 10.0x 8.3x 7.6x 8.3x 6.3x 100 5.7x 100 5.0x 5.0x 50 2.4x 2.7x 2.6x 2.4x 50 1.9x 1.8x 2.0x 1.7x 1.7x 2.0x 2.0x 1.2x 1.6x 1.7x 1.6x 1.7x 1.3x 1.5x 1.2x 1.2x 1.2x 1.4x 1.3x 1.3x 1.2x 1.5x 17 100 72 51 36 82 118 100 105 153 281 147 255 123 136 112 130 99 187 199 127 105 143 169 132 210 - 0.0x - 0.0x Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Average Deal Value Average EV/ Revenue Average EV/ EBITDA Average Deal Value Average EV/ Revenue Average EV/ EBITDA ■ Enterprise software deals values were at their ■ BPO and IT services industry has seen relatively lowest point in the 6 quarters ending Q2 10 sustained deal values ■ Q1-12 average enterprise value/ revenue and ■ Q1-12 average enterprise value/ revenue and EBITDA multiples are 2.4x and 11.0x, respectively EBITDA multiples are 1.7x and 10.2x, respectively ■ The largest software transaction was Hewlett- ■ Average enterprise value/ EBITDA multiples have Packard‟s acquisition of Autonomy in August 2011 gradually decreased during 2011 for ≈$11b Source: Capital IQ Note: All charts represent only transactions with disclosed values and multiples ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 19 reserved.
  • 21. Top ten recent technology M&A transactions Large Precedent Technology M&A Transactions (in $USD millions unless otherwise noted) Announcem ent Enterprise EV / EV / Date Status Buyers/Investors Target Value Revenue EBITDA Mar-12 Announced Scientific-Atlanta, LLC NDS Group Ltd. 4,965 5.0x 17.5x Mar-12 Announced Insight Venture Partners Quest Softw are Inc. 1,947 2.3x 12.7x Feb-12 Announced Oracle Corporation Taleo Corp. 1,805 5.7x 60.9x Feb-12 Announced Vista Equity Partners Misys plc 2,042 3.2x 16.1x Dec-11 Closed SAP Am erica, Inc. SuccessFactors, Inc. 3,516 12.0x NM Aug-11 Closed Hew lett-Packard Com pany Autonomy Corp. plc 10,301 11.1x 25.2x Aug-11 Closed Datatel, Inc. SunGard Higher Education, Inc. 1,775 - - Jun-11 Closed Providence Equity Partners LLC Blackboard Inc. 1,767 3.7x 22.3x May-11 Closed Schneider Electric España, S.A. Telvent Git S.A. 1,917 1.8x 11.4x Apr-11 Closed CenturyLink, Inc. Savvis, Inc. 2,963 3.0x 12.9x■ In the past 12 months there have been 20 technology transactions with values in excess of $1billion■ PE has been relatively active in the >$1bn value range■ Average enterprise value/revenue and EBITDA multiples were 5.3x and 22.4x, respectively Source: Capital IQ and company filings;©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 20reserved.
  • 22. Public enterprise software company comparables Enterprise software comparables for select application software, infrastructure software, operating systems and SaaS public companies are presented below, with mean forward revenue and EBITDA multiples of 4.5x and 15.3x. KPMG Corporate Finance LLC - Enterprise Software Public Comparables Enterprise Value / Equity Value Market Enterprise Share % of 52- Chg Cur Qtr Cur Qtr 2012E 2012E 2012E 2013E Com pany Cap (1,2) Value (3) Price (1,2) Wk High Pct 1Yr Rev RR EBITDA(4) RR Revenue EBITDA(4) P/E P/E Application Software A riba Inc. 3,1 8 1 2,953 32.71 88.1% -4.2% 5.9x NM 5.4x 23.3x NM 28.9x Deltek, Inc 684 816 10.66 91.6% 40.3% 2.3x 12.7x 2.2x 9.6x 27.2x 15.9x Info rmatica Co rpo ratio n 5,680 5,078 52.90 84.7% 1.4% 5.6x 20.4x 5.6x 18.7x 38.2x 28.0x JDA So ftware Gro up Inc. 1 69 ,1 1 57 ,1 27.48 78.5% -9.2% 1.7x 5.8x 1.6x 5.9x 12.7x 10.6x Presented application software M anhattan A sso ciates, Inc. 977 879 47.53 94.7% 45.2% 2.6x 12.5x 2.4x 1 x 0.1 21 .3x 1 x 7.1 companies experienced an average M ICROS Systems, Inc. 4,41 9 3,686 55.29 99.2% 1 .9% 1 3.4x 15.9x 3.2x 1 x 3.1 30.1 x 22.9x share price gain of 12.8% in the M icro Strategy Inc. 1 0 ,51 1 0 ,31 140.00 78.4% 4.1% 2.0x 26.4x 2.1x 21 .0x NM 29.0x past year. Mean forward revenue Open Text Co rp. 3,545 3,743 61 6 .1 84.6% -1.9% 2.9x 9.3x 2.9x 9.7x 15.0x 1 .4x 1 and EBITDA multiples are expected P egasystems Inc. 1,443 1,331 38.1 6 80.3% 0.5% 2.9x NM 2.7x 23.5x NM 30.1 x to be 3.5x and 14.3x respectively. Qlik Techno lo gies, Inc. 2,703 2,526 32.00 89.8% 23.1 % 5.8x 23.2x 6.2x NM NM NM Sage Gro up plc 6,206 6,224 4.78 95.5% 7.2% NM NM 2.8x 9.8x 15.7x 1 x 3.1 SA P A G 83,1 97 81,330 69.88 95.6% 1 % 4.1 3.5x 8.0x 3.9x 1 .1 1x 19.2x 15.2x Teradata Co rpo ratio n 1 ,467 1 10,985 68.1 5 97.8% 34.4% 4.1x 1 x 7.1 4.1x 15.8x 29.9x 22.5x A pplic a t io n S o f t wa re M e a n 12 .8 % 3 .6 x 15 .1x 3 .5 x 14 .3 x 2 3 .3 x 2 0 .4 x Infrastructure Software B M C So ftware Inc. 6,595 5,587 40.16 71.0% -19.3% 2.5x 6.6x 2.5x 5.9x 13.5x 1 .4x 1 CA Techno lo gies 13,384 12,343 27.56 98.4% 14.0% 2.4x 6.3x 2.5x 6.7x 1 x 4.1 1 .2x 1 Citrix Systems, Inc. 14,644 13,904 78.91 89.2% 7.4% 5.6x 19.2x 5.5x 17.6x 32.3x 25.3x Co mmVault Systems, Inc. 2,1 94 1,937 49.64 89.9% 24.5% 4.7x NM 4.4x 22.6x NM NM Co mpuware Co rpo ratio n 2,009 2,036 9.19 78.5% -20.4% 2.0x 1 .3x 1 1.9x 8.8x 20.0x 18.4x Presented infrastructure companies F5 Netwo rks, Inc. 10,688 1 31 0,1 134.96 98.9% 31 .6% 7.9x 24.0x 7.0x 17.3x 36.3x 25.4x experienced an average share price OP NET Techno lo gies Inc. 654 557 29.00 60.5% -25.6% 3.0x 1 x 4.1 2.8x 12.0x NM 26.9x Oracle Co rpo ratio n 145,074 130,502 29.16 79.9% -12.8% 3.6x 8.3x 3.4x 6.8x 13.4x 1 .1 1x gain of 4.4% in the past year. Mean P ro gress So ftware Co rp. 1,481 1 66 ,1 23.62 77.7% -18.8% 2.3x 13.5x 2.2x 9.5x 16.4x 16.3x forward revenue and EBITDA Quest So ftware Inc. 1,944 1,874 23.27 89.0% -8.4% 1.9x 6.9x 2.0x 6.7x 17.4x 12.5x multiples are expected to be 4.5x Riverbed Techno lo gy, Inc. 4,423 3,953 28.08 67.1% -25.4% 4.9x 28.8x 4.6x 14.5x 31 .4x 21 .6x and 13.8x respectively. So larWinds, Inc. 2,799 2,647 38.65 91.5% 64.7% 1 .9x 1 24.6x 10.5x 23.3x 38.9x 28.2x TIB CO So ftware Inc. 4,967 4,750 30.50 92.4% 1 .9% 1 5.3x NM 4.4x 14.4x 32.8x 22.2x VM ware, Inc. 47,768 43,705 1 2.37 1 98.8% 37.8% 10.3x NM 9.6x 26.8x NM 36.8x Inf ra s t ruc t ure S o f t wa re M e a n 4 .4 % 4 .9 x 14 .9 x 4 .5 x 13 .8 x 2 4 .2 x 2 0 .6 x Operating Systems M icro so ft Co rpo ratio n 270,644 232,756 32.26 97.9% 27.0% 2.8x 6.7x 3.0x 7.3x 12.5x 10.7x Red Hat, Inc. 1 ,541 1 10,727 59.89 97.1% 31 .9% 9.0x NM 7.9x 28.2x NM NM O pe ra t ing S ys t e m s M e a n 2 9 .5 % 5 .9 x 6 .7 x 5 .5 x 17 .8 x 12 .5 x 10 .7 x Source: Capital IQ and company filings (1) Market Capitalization amounts are in millions, based on closing share prices as of March 31, 2012; (2) Market Capitalization and Share Prices are based on foreign exchange listed securities and converted to $USD (3) Enterprise Value (EV) equals Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents; (4) EBITDA equals Earnings before Interest, Taxes, Depreciation, and Amortization©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 21reserved.
  • 23. Public enterprise software company comparables (2) KPMG Corporate Finance LLC - Enterprise Software Public Comparables Enterprise Value / Equity Value Market Enterprise Share % of 52- Chg Cur Qtr Cur Qtr 2012E 2012E 2012E 2013E Com pany Cap (1,2) Value (3) Price (1,2) Wk High Pct 1Yr Rev RR EBITDA(4) RR Revenue EBITDA(4) P/E P/E SaaS Carbo nite, Inc. 278 205 1 .01 1 52.2% NM 3.0x NM 2.4x NM NM NM Co ncur Techno lo gies, Inc. 3,1 28 2,903 57.38 91.7% 3.5% 7.2x NM 6.2x 26.9x NM NM Co nstant Co ntact, Inc. 900 760 29.79 82.0% -14.6% 3.3x 29.3x 3.0x 16.4x NM 26.1x Co rnersto ne OnDemand, Inc. 1,079 997 21.84 92.9% 19.8% 1 .1 1x NM 8.8x NM NM NM Presented SaaS companies Kenexa Co rp. 851 768 31.24 94.1% 13.2% 2.5x 20.0x 2.1x 13.5x 37.9x 25.0x experienced an average share price Lo gM eIn, Inc. 865 667 35.23 74.3% -16.4% 5.2x NM 4.7x 22.2x NM 39.5x gain of 16.4% in the past year. NetSuite Inc. 3,493 3,358 50.29 97.1% 72.9% 1 x 3.1 NM 1 .3x 1 NM NM NM Mean forward revenue and EBITDA Respo nsys, Inc. 568 475 1 .97 1 65.8% NM 3.2x 21 .7x 2.9x 18.6x NM NM multiples are expected to be 5.4x salesfo rce.co m, inc 21 68 ,1 20,947 154.51 96.5% 15.7% 8.3x NM 7.1x NM NM NM and 19.9x respectively. Taleo Co rp. 1,935 1 9 ,81 45.93 99.9% 28.8% 5.4x NM 4.8x 21 .4x NM 36.6x The Ultimate So ftware Gro up, Inc. 1,933 1,884 73.28 97.7% 24.7% 6.5x NM 5.7x NM NM NM SaaS M ean 16 .4 % 6 .2 x 2 3 .7 x 5 .4 x 19 .9 x 3 7 .9 x 3 1.8 x T o t a l E nt e rpris e S o f t wa re M e a n 11.4 % 4 .9 x 15 .7 x 4 .5 x 15 .3 x 2 3 .9 x 2 1.7 x Source: Capital IQ and company filings (1) Market Capitalization amounts are in millions, based on closing share prices as of March 31, 2012 (2) Market Capitalization and Share Prices are based on foreign exchange listed securities and converted to $USD (3) Enterprise Value (EV) equals Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents (4) EBITDA equals Earnings before Interest, Taxes, Depreciation, and Amortization 2012E EV/EBITDA and 3-year revenue CAGR 2012E EV/EBITDA and 2012E EBITDA margin 35.0x 35.0x 30.0x 30.0x 25.0x 25.0x EV / EBTIDAEV / EBTIDA 20.0x 20.0x 15.0x 15.0x 10.0x 10.0x 5.0x 5.0x 0.0x 0.0x 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Source: Capital IQ and company filings3-year Revenue CAGR 2012E EBITDA Margin ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 22 reserved.
  • 24. Public BPO and IT services company comparables BPO comparables for select CRM and voice, financial/ transaction processing, HR/ administration, and offshore BPO public companies are presented below, with mean forward revenue and EBITDA multiples of 1.7x and 7.7x. KPMG Corporate Finance LLC - BPO and IT services public comparables Enterprise Value / Equity Value Market Enterprise Share % of 52- Chg Cur Qtr Cur Qtr 2012E 2012E 2012E 2013E Com pany Cap (1) Value (3) Price (1,2) Wk High Pct 1Yr Rev RR EBITDA(4) RR Revenue EBITDA(4) P/E P/E BPO Presented CRM and voice companies experienced an average CRM and Voice share price gain of -17.1% in the Co nvergys Co rpo ratio n 1,550 1,232 13.35 91.3% -7.0% 0.5x 4.1x 0.6x 4.9x 13.4x 13.2x past year. Mean forward revenue Sykes Enterprises, Inco rpo rated 683 472 15.80 69.0% -20.1% 0.4x 4.8x 0.4x 4.4x 1 .6x 1 1 .4x 1 and EBITDA multiples are expected Teleperfo rmance 1,582 1,550 28.56 77.3% -24.3% 0.6x 3.6x 0.5x 4.1x 1 .4x 1 8.9x TeleTech Ho ldings Inc. 912 833 1 0 6.1 71.9% -16.9% 0.7x 6.8x 0.7x 6.0x 12.2x 10.6x to be 0.6x and 4.8x respectively. C R M a nd V o ic e M e a n - 17 .1% 0 .6 x 4 .8 x 0 .6 x 4 .8 x 12 .2 x 11.0 x Financial and Transaction Processing Presented financial and transaction A lliance Data Systems Co rpo ratio n 6,303 12,923 125.96 98.8% 46.7% 3.8x 17.0x 3.7x 1 .5x 1 17.2x 1 x 3.1 processing companies experienced CSG Internatio nal, Inc. 488 639 1 4 5.1 70.1% -24.1% 0.9x 2.6x 0.9x 3.9x 7.0x 13.3x an average share price gain of DST Systems Inc. 2,326 3,409 54.23 91.3% 2.7% 1.9x 12.5x 1.7x 8.1x 13.6x 1 x 2.1 10.2% in the past year. Mean Fiserv, Inc. 9,617 12,773 69.39 99.1% 10.6% 2.8x 1 x 0.1 2.8x 8.7x 15.2x 1 x 2.1 forward revenue and EBITDA Glo bal P ayments Inc. 3,722 3,755 47.50 88.1% -2.9% 1.8x 8.0x 1.6x 7.2x 17.3x 13.0x multiples are expected to be 2.2x To tal System Services, Inc. 4,357 4,320 23.07 99.3% 28.0% 2.3x 12.0x 2.4x 8.1x 20.2x 16.3x and 7.9x respectively. F ina nc ia l a nd T ra ns a c t io n P ro c e s s ing M e a n 10 .2 % 2 .2 x 10 .4 x 2 .2 x 7 .9 x 15 .1x 13 .3 x HR and Administration A uto matic Data P ro cessing, Inc. 27,075 25,756 55.1 9 96.7% 7.6% 2.5x 1 .4x 1 2.3x 10.9x 21 .9x 18.3x Presented HR and administration Capita P LC 7,129 9,780 1 .71 1 94.5% -1.8% 2.1x 1 .4x 1 1.9x 1 .2x 1 16.0x 13.0x companies experienced an average Insperity, Inc. 796 528 30.64 94.6% 0.9% 0.3x 7.3x 0.2x 5.7x 24.6x 16.3x share price gain of 2.7% in the past Iro n M o untain Inc. 4,927 8,101 28.80 80.5% -7.8% 2.8x 8.4x 2.7x 8.8x 23.5x 18.6x year. Mean forward revenue and P aychex, Inc. 1 ,235 1 10,732 30.99 91.9% -1.3% 4.7x 1 .4x 1 4.6x 10.8x 21 .9x 19.0x EBITDA multiples are expected to Xchanging P LC 363 336 1.52 82.2% 18.7% 0.3x 2.5x 0.3x 2.7x 1 .1 1x 9.1x be 2.0x and 8.3x respectively. H R a nd A dm inis t ra t io n M e a n 2 .7 % 2 .1x 8 .7 x 2 .0 x 8 .3 x 19 .8 x 15 .7 x Offshore BPO Exlservice Ho ldings, Inc. 862 777 27.44 95.1% 29.7% 1.9x 9.9x 1.7x 9.6x 20.5x 15.2x Presented offshore BPO companies Firstso urce So lutio ns Limited 81 374 0.19 46.8% -53.4% 0.9x 10.5x 0.8x 8.3x 3.0x 4.1x experienced an average share price Genpact Ltd. 3,626 3,577 16.30 89.8% 12.6% 2.0x 1 .2x 1 1.9x 10.9x 21 .0x 16.7x gain of 0.8% in the past year. Mean WNS (Ho ldings) Ltd. 603 675 12.05 92.3% 14.2% 1.4x 8.4x 1.6x 9.1x NM NM O f f s ho re B P O M e a n 0 .8 % 1.6 x 10 .0 x 1.5 x 9 .5 x 14 .8 x 12 .0 x forward revenue and EBITDA multiples are expected to be 1.5x T o tal B P O M ean 0 .6 % 1.7 x 8 .7 x 1.7 x 7 .7 x 15 .9 x 13 .4 x and 9.5x respectively. Source: Capital IQ and company filings (1) Market Capitalization amounts are in millions, based on closing share prices as of March 31, 2012 (2) Market Capitalization and Share Prices are based on foreign exchange listed securities and converted to $USD (3) Enterprise Value (EV) equals Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents (4) EBITDA equals Earnings before Interest, Taxes, Depreciation, and Amortization©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 23reserved.
  • 25. Public BPO and IT services company comparables (2) Comparables for select commercial, government, European, and offshore IT services public companies are presented below, with mean forward revenue and EBITDA multiples of 1.3x and 7.2x. KPMG Corporate Finance LLC - BPO and IT services public comparables Enterprise Value / Equity Value Market Enterprise Share % of 52- Chg Cur Qtr Cur Qtr 2012E 2012E 2012E 2013E Com pany Cap (1) Value (3) Price (1,2) Wk High Pct 1Yr Rev RR EBITDA(4) RR Revenue EBITDA(4) P/E P/E IT Services Commercial IT Services A ccenture plc 41,567 36,526 64.50 97.9% 17.3% 1.3x 8.8x 1.3x 7.8x 1 x 9.1 1 x 5.1 CGI Gro up, Inc. 5,746 6,642 22.28 91.5% 6.4% 1.6x 9.4x 1.5x 8.2x 14.7x 1 .8x 1 Presented commercial IT services CIB ER, Inc. 308 310 4.24 60.7% -36.7% 0.3x 1 .0x 1 0.3x 7.6x 27.9x 13.8x companies experienced an average Co mputer Sciences Co rpo ratio n 4,643 6,524 29.94 58.2% -38.6% 0.4x NM 0.4x 3.2x 6.3x 8.8x share price gain of -2.2% in the Dell Inc. 29,241 23,677 16.60 90.4% 14.4% 0.4x 5.8x 0.4x 4.2x 7.8x 7.4x Hewlett-P ackard Co mpany 47,120 70,361 23.83 57.0% -41 .8% 0.6x 5.1 x 0.6x 4.3x 4.9x 5.4x past year. Mean forward revenue Internatio nal B usiness M achines Co rp. 241,755 261,200 208.65 99.8% 28.0% 2.2x 7.6x 2.4x 9.5x 15.6x 12.7x and EBITDA multiples are expected P erficient Inc. 376 366 12.01 93.8% 0.0% 1.4x 1 .6x 1 1.2x 7.3x NM 16.2x to be 0.9x and 6.5x respectively. Sapient Co rp. 1,746 1,539 12.45 76.6% 8.7% 1.5x 10.2x 1.3x 9.8x 19.8x 14.3x The Hackett Gro up, Inc. 246 213 5.97 96.1% 55.5% 1x .1 9.6x 0.9x 7.5x 18.5x 1 .9x 1 Unisys Co rpo ratio n 862 764 19.72 59.5% -36.8% 0.2x 1 .4x 0.2x 1.6x 8.6x 6.1x C o m m e rc ia l IT S e rv ic e s M e a n - 2 .2 % 1.0 x 8 .1x 0 .9 x 6 .5 x 14 .3 x 11.2 x Presented government IT services companies experienced an average Government IT Services CA CI Internatio nal Inc. 1,650 2,225 62.29 93.7% 1.6% 0.6x 6.2x 0.5x 6.3x 14.5x 1 x 0.1 share price gain of -9.7% in the M anTech Internatio nal Co rpo ratio n 1,271 1,356 34.46 74.5% -18.7% 0.5x 4.2x 0.4x 4.9x 9.4x 1 x 0.1 past year. Mean forward revenue M A XIM US, Inc. 1,372 1 83 ,1 40.67 86.9% 0.2% 1.2x 8.9x 1.2x 8.1x 18.7x 14.3x and EBITDA multiples are expected SA IC, Inc. 4,502 4,762 13.20 74.8% -22.0% 0.5x NM 0.4x 5.1x 9.5x 9.6x to be 0.6x and 6.1x respectively. G o v e rnm e nt IT S e rv ic e s M e a n - 9 .7 % 0 .7 x 6 .4 x 0 .6 x 6 .1x 13 .0 x 11.0 x European IT Services A to s S.A . 4,884 5,079 57.65 96.7% -1.8% 0.5x 4.3x 0.4x 4.2x 14.0x 9.7x Presented European IT services Cap Gemini S.A . 6,883 6,307 44.74 79.8% -23.0% 0.5x 4.7x 0.5x 5.1x 14.5x 12.3x companies experienced an average Lo gica P LC 2,549 3,064 1.59 68.2% -24.2% 0.5x 8.9x 0.5x 6.1x 10.6x 8.3x share price gain of -16.3% in the E uro pe a n IT S e rv ic e s M e a n - 16 .3 % 0 .5 x 5 .9 x 0 .5 x 5 .2 x 13 .0 x 10 .1x past year. Mean forward revenue Source: Capital IQ and company filings and EBITDA multiples are expected (1) Market Capitalization amounts are in millions, based on closing share prices as of March 31, 2012 (2) Market Capitalization and Share Prices are based on foreign exchange listed securities and converted to $USD to be 0.5x and 5.2x respectively. (3) Enterprise Value (EV) equals Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents (4) EBITDA equals Earnings before Interest, Taxes, Depreciation, and Amortization©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 24reserved.
  • 26. Public BPO and IT services company comparables (3) KPMG Corporate Finance LLC - BPO and IT services public comparables Enterprise Value / Equity Value Market Enterprise Share % of 52- Chg Cur Qtr Cur Qtr 2012E 2012E 2012E 2013E Com pany Cap (1) Value (3) Price (1,2) Wk High Pct 1Yr Rev RR EBITDA(4) RR Revenue EBITDA(4) P/E P/E Offshore IT Services Co gnizant Techno lo gy So lutio ns Co rpo ratio n 23,345 20,913 76.95 92.2% -5.5% 3.1 x 15.3x 2.8x 13.6x 27.1 x 18.9x HCL Techno lo gies Ltd. 6,561 6,644 9.48 91.3% -1 .4% 1 1.7x 9.6x 1.5x 8.2x 17.9x 12.8x Hexaware Techno lo gies Limited 679 588 2.30 93.6% 55.4% 1.8x 8.0x 1.6x 8.0x 14.9x 10.3x iGA TE Co rpo ratio n 952 1,876 16.76 85.6% -10.7% 1.8x 6.5x 1.6x 6.9x 18.5x 10.0x Info sys Ltd. 32,1 61 28,284 56.29 86.4% -22.5% 3.9x 1 .7x 1 3.7x 1 .9x 1 20.8x 1 x 7.1 Presented offshore IT services Info tech Enterprises Limited 327 256 2.94 86.5% -18.6% 0.8x 4.1x 0.7x 4.3x 9.9x 8.4x companies experienced an average KP IT Cummins Info systems Ltd. 280 255 1.57 80.5% -16.6% 0.9x 6.9x 0.8x 5.1x 12.0x 8.8x share price gain of -9.1% in the M phasis Limited 1,669 1,298 7.94 82.8% -14.8% 1.2x 6.6x 1.2x 6.4x 1 x 0.1 10.4x past year. Mean forward revenue NIIT Techno lo gies Limited 317 291 5.32 94.9% 28.5% 0.9x 5.0x 0.8x 4.5x 7.9x 7.1x and EBITDA multiples are expected P atni Co mputer Systems Limited 1,439 1,064 9.70 94.8% -9.4% 0.4x 2.5x 1.4x 7.9x 17.8x 1 x 3.1 to be 1.8x and 8.4x respectively. Ro lta India Ltd. 297 642 1.84 60.3% -40.9% 1.8x 5.0x 1.6x 4.0x 4.0x 4.7x Satyam Co mputer Services Limited 1,854 1,406 1.58 85.1% 6.8% 1x .1 6.6x 1.0x 6.1x 20.1 x 10.3x Syntel, Inc. 2,342 2,022 56.00 90.3% 7.2% 2.9x 7.4x 2.7x 1 .7x 1 19.9x 14.9x Tata Co nsultancy Services Limited 44,906 43,743 22.94 91.3% -13.5% 4.3x 13.5x 3.9x 13.8x 23.1 x 18.4x Tech M ahindra Limited 1 ,801 2,037 1 4 4.1 90.2% -6.8% 1.9x 1 .7x 1 1.7x 10.0x 1 .0x 1 10.4x VanceInfo Techno lo gies Inc. 510 399 12.04 34.5% -61 .7% 1x .1 13.8x 1x .1 7.9x 15.8x 10.3x Wipro Ltd. 21 ,072 20,060 8.62 89.6% -19.6% 2.7x 14.2x 2.4x 1 x 2.1 17.7x 16.4x O f f s ho re IT S e rv ic e s M e a n - 9 .1% 1.9 x 8 .7 x 1.8 x 8 .4 x 15 .8 x 11.9 x T o t a l IT S e rv ic e s M e a n - 7 .6 % 1.4 x 8 .1x 1.3 x 7 .2 x 14 .8 x 11.4 x Source: Capital IQ and company filings (1) Market Capitalization amounts are in millions, based on closing share prices as of March 31, 2012 (2) Market Capitalization and Share Prices are based on foreign exchange listed securities and converted to $USD (3) Enterprise Value (EV) equals Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents (4) EBITDA equals Earnings before Interest, Taxes, Depreciation, and Amortization 2012E EV/EBITDA and 3-year revenue CAGR 2012E EV/EBITDA and 2012E EBITDA margin 16.0x 16.0x 14.0x 14.0x 12.0x 12.0x 10.0x 10.0x EV / EBTIDAEV / EBTIDA 8.0x 8.0x 6.0x 6.0x 4.0x 4.0x 2.0x 2.0x 0.0x 0.0x -5% 5% 15% 25% 35% 45% 55% 5% 10% 15% 20% 25% 30% 35% 40% 45%Source: Capital IQ and company filings 3-year Revenue CAGR 2012E EBITDA Margin©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 25reserved.
  • 27. Private equity technology focusGlobal Private Equity Backed Software M&A Activity 2011 Global Private Equity Backed Software $250 200 M&A Activity Corporate Other Divestiture 8% 158 $200 151 146 6% 173 150 156 166 122 128 Add-on Deal value ($b) 148 Deal volume $150 Growth/ 36% 99 90 100 Expansion 15% $100 58 53 50 $50 30 $0 0 2005 2006 2007 2008 2009 2010 2011 Buyout/ LBO Total Capital Invested Deal Count 35% In 2011, within the technology sector, software In 2011, within the technology sector, software was continued to be the most active acquisition area for also the most active exit area for private equity private equity investment, followed by IT services divestitures, followed by communications & Services networking Services 18% 16% Semiconductors Semiconductors 2% 4% Hardware Software Hardware 12% 7% Software 50% 55% Communication & Networking Communication & 16% Networking Source: PitchBook 20%©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 26reserved.
  • 28. Technology deal drivers for 2012 Cash is king ■ Strategic acquirers (made up of the S&P 500) are holding an additional $1.7t in investable cash ■ Financial investors have over $400 billion in available capital ■ Companies are unable to meet “wall street” growth expectations via organic initiatives, and are looking to acquire other companies Access to new technology and revenue streams ■ In a recent KPMG Technology Company Survey, 68% of the interviewed executives expect to be involved in an M&A transaction in the next two years Most important M&A drivers in 2011-12 Biggest revenue growth drivers in 2011-13 80% 80% 69% 65% % of respondents 60% 60%% of respondents 50% 45% 43% 40% 31% 31% 40% 20% 20% 20% 12% 20% 15% 10% 7% 7% 4% 1% 4% 0% 0% Access or Product Access to Access to Production Labor cost Debt Pension and Other Cloud Mobile Advanced Social Security Healthcare IT Green Other new synergies employees new cost pressures healthcare computing applications data analytics media/unified and computing technology with new geographic pressures cost (incl. mobile collaboration applications and products skills and markets pressures devices) expertise Source: 2011 KPMG Technology Industry Business Climate Survey based on responses from 102 senior executives at Source: 2011 KPMG Technology Industry Business Climate Survey based on responses from 102 senior executives at U.S. technology companies U.S. technology companies Note: Multiple responses allowed Note: Multiple responses allowed ©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 27 reserved.
  • 29. Technology deal drivers for 2012 (2) Significant PE focus ■ Outsourced services and software as a service companies have long term recurring revenues ■ The technology sector provides a relatively secure customer base and long term recurring cash flows ■ Recent transactions include: ■ Insight Venture Partners / Quest Software Inc. for $1.9 billion ■ Vista Equity Partners / Misys plc for $2.0 billion ■ Providence Equity Partners LLC / Blackboard Inc. for $ 1.8 billion Other Drivers ■ Possible capital gains and ordinary dividend tax rate increases in 2013 ■ Continued rise of subscription based pricing models, as well as freemium models within consumer markets ■ Growth of social media and new evolving business models that are challenging recently established companies (Facebook‟s acquisition of Instagram) ■ Price/Earnings valuations are relatively reasonable ■ Enterprise software/ BPO/ IT Services Index*: 16.7x ■ Dow Jones: 14.5x ■ Nasdaq: 22.6x Source: Capital IQ and PitchBook Note: *Enterprise software/BPO/IT Services index represents the respective companies in the preceding KPMG Corporate Finance public comparable companies slides©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 28reserved.
  • 30. Rising optimism for technology M&A in 2012 Investment banks Market competitors  Increasing cross-sector convergence between software,  M&A to drive innovation and expansion into growth markets hardware and services  Valuations and market conditions favor acquisitions and  Established companies are worried about disruptive present a plethora of attractive opportunities technologies and want to capture that growth through M&A  Cloud presence tops every list of strategic priorities; other than seeing that growth go to start-ups priorities include mobile, virtualization, analytics, storage and  Big data, mobile and cloud technologies will drive bold security investments in 2012  Acceleration beyond virtualization as corporate customers  Expanded focus on social media – larger, less agile want to spend less time on underlying infrastructure companies looking to remain relevant Industry research Market participants  2012 M&A deal volume anticipated to exceed 2011 volume  Partner big-to-big and acquire big-to-small  Potentially slower IT spending in first half of 2012 due to  Increasing focus on small and medium size business market global growth slowdown and potential political changes in SaaS, data analytics and security  After a great 2011, increasing number of small businesses  Emerging bundled products to handle multiple IT customer expected to flood the market in 2012 needs  Increased interest in vertically focused solutions as  Non-software companies looking to acquire software assets customers demand out-of-the-box functionality Industry pundits and technology executives anticipate strong growth and M&A activity in 2012 with cloud computing, mobile and big data continue being the top strategic priorities for key competitors Source: Industry news, industry research, company filings and earnings call/Q&A (www.seekingalpha.com)©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 29reserved.
  • 31. M&A Market LandscapeTechnology M&A LandscapeDeal ManagementQuestions
  • 32. M&A continues to be on the radar of key Technology executives “Volume last year was much higher than in “Our focus on key growth initiatives and investments in “As we look into 2012, there are 3 significant 2010, and we expect this year to be the same innovation are enabling us to expand into new markets, market forces shaping our plan. First, the or slightly larger” and capitalize on trends like analytics and cloud. I do mobility imperative; second, the enterprise cloud Jon Woodruff, Co-Head – Technology Investment think the acquisition play is a good one, and I do think the evolution; and third, the cloud service build-out” Banking, Goldman Sachs; February 6, 2012 market’s in a more reasonable position” Mark Templeton, CEO, Citrix Systems; January 25, Mark Loughridge, CFO, IBM; January 19, 2012 2012 “This year’s technology deal volume could be bigger than last year’s and 2007’s. “We continue to invest in our technology leadership, “Im still committed to this string of pearls Convergence between hardware, software and including in the areas of cloud computing, virtualization approach we have, where we buy exciting new services will continue to add products to the and software-as-a-service” companies. We have a lot to do around the same sales chains.” BMC 2011 Annual Report; May 2011 opportunity around cloud, Big Data and trust.” Chet Bozdog, Global Head – Technology Joe Tucci, CEO, EMC; January 24, 2012 Investment Banking, BoA; February 6, 2012 “Now with our staff executing well, we expect to be more active with acquisitions in the quarters and years to come, selectively adding to our portfolio with a focus on “We feel ready to accelerate our innovation, “Cloud computing and desktops shift to capacity and speed, and go for leadership in our 5 foundational priorities - core networking, data mobile devices will continue to be huge five categories; applications, analytics, mobile, center cloud, video, collaboration and business multiyear trends” database technology, and cloud” architectures” Drago Rajkovic, Head – Technology M&A, Jim Hagemann Snabe, co-CEO, SAP; January 25, John Chambers, CEO, Cisco Systems; February 8, 2012 JPMorgan Chase & Co.; February 6, 2012 2012 “2012 has a perfect storm of trends in “We definitely see opportunity in the SMB market. As you “Software would be the one area that I think disruptive technologies, tax changes, industry know, we created a new group focused on this segment. there maybe some assets that are ready to consolidation, new buyers and record cash We are driving a number of new initiatives. We continue move in 2012, and we would want to be there” reserves held by major technology companies, to gain traction with our long-term growth initiatives in the Meg Whitman, CEO, HP; November 21, 2011 all of which will make it the best year since the areas of cloud, computing, mobile and virtualization” dot com era for M&A” Enrique Salem, CEO, Symantec; January 25, 2012 Bruce Milne, CEO, Corum; February 2012 Industry pundits and technology executives expect strong growth and M&A activity in 2012 with cloud computing, mobile and big data continue being the top strategic priorities for key competitors Source: Industry news, industry research, company filings and earnings call/Q&A (www.seekingalpha.com)©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 31reserved.
  • 33. Selling your business to a large U.S. technology buyer Enhance your profile in the US market ■ Engage with the analyst community (Forrester, Gartner, IDC etc) ■ Participate in trade shows / industry conventions ■ Produce thought leadership pieces, and build your market presence Enter into partnerships (if appropriate) ■ This is the best way for a mid market company to get on the radar of a large technology buyer ■ Build compatible platforms, but don‟t be too narrow in your focus (i.e. don‟t be beholden to one platform) Engage in early (and frequent) discussions ■ Engage early with large technology companies on non-M&A dialogue ■ Discuss potential cross-servicing of common clients – be helpful ■ Build internal support for your business and make sure you have many “mentors” at the potential acquirer – at the highest possible levels©2012 KPMG Corporate Finance LLC, a Delaware limited liability company, is a member of FINRA and SIPC and is registered as a broker-dealer with the SEC. KPMG Corporate Finance LLC is also registered as a municipal advisor with the SEC and MSRB. KPMGCorporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights 32reserved.
  • 34. Thank you©2012 KPMG Corporate Finance LLC, a Delaware limitedliability company, is a member of FINRA and SIPC and isregistered as a broker-dealer with the SEC. KPMG CorporateFinance LLC is also registered as a municipal advisor with theSEC and MSRB. KPMG Corporate Finance LLC is a subsidiaryof KPMG LLP, a Delaware limited liability partnership and theU.S. member firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative ("KPMGInternational"), a Swiss entity. All rights reserved.The KPMG name, logo and „cutting through complexity‟ areregistered trademarks or trademarks of KPMG InternationalCooperative (KPMG International).
  • 35. Questions & Answers©COPYRIGHT 2012. FIRMEX. ALL RIGHTS RESERVED
  • 36. Thank You Join us for our May webinar: Harvesting Intangible Assets Whether you call it "harvesting intangible assets" or "intellectual property management," organizations must make the most of everything they have to offer if they want to remain competitive. Yet, the majority of companies are oblivious to the wealth of revenue-producing opportunities hiding just below the strategic surface. Author Andrew J. Sherman shares insights and expertise gleaned from his work with some of the worlds leading companies who have capitalized on intellectual assets such as patents, trademarks, customer information, software codes, databases, business models, home-grown processes, and employee expertise. Featuring Andrew J. Sherman, author and partner at Jones Day. www.Firmex.com/company/events©COPYRIGHT 2012. FIRMEX. ALL RIGHTS RESERVED